Chewy Is Down 80% From Its All-Time High. Is This a No-Brainer Buy for Growth Stock Investors?
Chewy's recent pop is undeniable, but the stock may face long-term headwinds.
Overview
New investors may not yet be experts regarding bear market rallies, so here's a quick primer on those scenarios. Put simply, it's a fast-paced, often short-lived rally by a stock that's mired in the confines of a longer-ranging bear market.
That may be what's playing out with Chewy (NYSE: CHWY). The once beloved pet equity is a good example of two things being true at once. Bad news: the consumer discretionary stock is 80% off its all-time high. On the more positive side of the ledger, shares of Chewy gained 17.5% for the 90 days ended Aug. 20.
Details
Hey, that's nothing to scoff at; all rebounds have to start somewhere, and it's excellent work in a short time frame. However, investors need to tread carefully before assigning Chewy "no-brainer" growth stock status.
Source
Originally published at www.fool.com.